USDC vs USDC.e: What is the Difference on Avalanche?

What is USDC.e vs USDC?

USDC.e represents wrapped USDC tokens on the Avalanche blockchain. The token was initially deployed by the Ava Labs team to help build liquidity on the network, however they have stated that the token will soon be deprecated and all liquidity will migrate to the native USDC token.

USDC is the native USDC Coin that is deployed by the Circle team (creators of USDC) on the Avalanche blockchain. These are directly redeemable for US Dollars via Circle's exchange or other platforms like Coinbase.

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Key Differences Between USDC.e and USDC

The list below outlines the key differences between USDC.e and USDC to help you decide which stablecoin to hold and use in Avalanche DeFi.

USDC.e has increased smart contract risks because it is a 'wrapped' version of USDC.
USDC.e has less liquidity than native USDC on DeFi applications on the Avalanche blockchain.
USDC.e offers higher yields than USDC because it has an additional layer of smart contract risk.
USDC.e will eventually be deprecated by the contract creators and all liquidity will be migrated to USDC.

Overall, it is clear that USDC.e has fewer benefits and more risk than USDC. It is generally recommended that investors hold USDC over USDC.e to minimize their stablecoin risks.

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How to Swap USDC.e for USDC on AVAX

If you are looking to swap your USDC.e for USDC, we recommend you use Avalanche's largest stable swap - Platypus Finance. They offer the lowest fee swaps with the deepest liquidity compared to any DEX on the Avalanche blockchain. You can follow the guide below to get started:

Visit Platypus Finance
Select 'Swap'
Select USDC.e as the token you have, and USDC as the token you want
Input the amount of USDC.e you want to swap for USDC
Execute your transaction and you will receive USDC instantly

Swap USDC.e for USDC — Swapping USDC to USDC.e with low slippage on Platypus Finance.

Can I redeem USD from Circle with USDC.e?

No, you cannot redeem USD directly from Circle or other platforms like Coinbase with USDC.e tokens. This is because they are the Avalanche wrapped tokens and do not represent native USDC.

You will need to use a DEX like Platypus Finance, Trader Joe or Pangolin to swap USDC.e.

USDC to USDC.e Conversion Rate

The chart below is the live price of USDC/USDC.e which will give you an indication of the current conversion rates.

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Final Thoughts

In conclusion, USDC.e is a wrapped version of USDC and has higher smart contract risk and lower liquidity than native USDC on the Avalanche blockchain. We would generally recommend you hold native USDC over USDC.e to minimize your stablecoin risks when using DeFi applications on AVAX. If you are looking to swap USDC.e for USDC, you can use Platypus Finance to do this quickly and easily with low slippage.